Central Board of Indirect Taxes and Customs (CBIC) via circular No. 203/15/2023-GST has clarified the determination of place of supply in case of supply of services of transportation of goods, including through mail and courier and in case of supply of services
A. Place of supply in case of service of transportation of goods, including through mail or courier:
a. It is clarified that the place of supply of services of transportation of goods, other than through mail and courier, in cases where location of supplier of services or location of recipient of services is outside India, shall be determined as per section 13(2) of IGST Act. Accordingly, in cases where location of recipient of services is available, the place of supply of such services shall be the location of recipient of services and in cases where location of recipient of services is not available in the ordinary course of business, the place of supply shall be the location of supplier of services.
b. Further, it is also clarified that the place of supply in case of service of transportation of goods by mail or courier shall be determined on the same principles as mentioned above.
B. Place of supply in case supply of services in respect to advertisement sector:
a. In case of supply of space or supply of rights to use the space on the hoarding/ structure belonging to vendor to the client/advertising company for display of their advertisement on the said hoarding/ structure, it has been clarified that since the hoarding/structure is an immovable property erected on a land, the place of supply will be the location where such hoarding/structure is located.
b. In case where place of supply of advertising service is provided by the vendor, it has been clarified that the place of supply will be location of the recipient in case of same is registered person, in other cases location of the recipient if there is any address record however in the absence of any address record of the recipient, location of the supplier of the service will be considered as place of supply.
Source: Central Board of Indirect taxes and Customs (CBIC)
